Sierra Bancorp Reports Earnings
Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the three- and nine-month periods ended September 30, 2019. Sierra Bancorp reported consolidated net income of $8.952 million for the third quarter of 2019, representing an increase of $1.881 million, or 27%, relative to the third quarter of 2018. The favorable variance in net income came from the positive impact of a higher average balance of interest-earning assets, an increase in noninterest income, reduced overhead expenses, and a lower loan loss provision. The Company’s return on average assets was 1.36% in the third quarter of 2019, return on average equity was 11.78%, and diluted earnings per share were $0.58.
For the first nine months of 2019 the Company recognized net income of $26.676 million, which reflects an increase of 23% relative to the same period in 2018. The Company’s financial performance metrics for the year-to-date period include an annualized return on average equity of 12.33%, a return on average assets of 1.40%, and diluted earnings per share of $1.73.
Assets totaled $2.636 billion at September 30, 2019, representing an increase of $113 million, or 4%, for the first nine months of the year. The increase in assets resulted from a higher level of outstanding balances on mortgage warehouse lines and growth in investment securities, partially offset by runoff in real estate loans and commercial loans. Gross loans grew to $1.798 billion at September 30, 2019, for an increase of $66 million, or 4%, for the first nine months of the year. Total nonperforming assets increased by over $1 million, or 20%, during the first nine months of 2019 due to the downgrade of a $2.8 million loan in the third quarter. Deposits totaled $2.196 billion at September 30, 2019, representing a year-to-date organic increase of $80 million, or 4%, while non-deposit borrowings were reduced by $5 million.
“I’ve always believed that if you put in the work, the results will come. I don’t do things half-heartedly. Because I know if I do, then I can expect half-hearted results.”
– Michael Jordan
“We are pleased to report strong earnings for the third quarter along with solid organic deposit growth for the year-to-date period. Moreover, while real estate and commercial loan growth remain challenging for us, we were able to increase total loans by boosting utilization on mortgage warehouse lines,” stated Kevin McPhaill, President and CEO. “Our team throughout the Bank is focused on business development and process improvement, which is most immediately evident in an improved efficiency ratio and solid earnings,” he noted further. “While it appears that near-term loan growth may be subdued, at best, I believe that our hard work and dedication should contribute to sound results for the remainder of the year and provide a solid foundation for future growth,” McPhaill concluded.